02-11-2015, 02:23 PM
(This post was last modified: 02-11-2015, 02:52 PM by Dividend Watcher.)
Well, now that GILD has said they'll pay a dividend, it moves off my hoping & praying list to a dividend-paying contributor. A little less speculative and I'll continue to hold this for longer than originally anticipated. I still believe their pipeline shows some promise. We'll have to watch further and see how 2015 shakes out.
Today I sold 20% of my PEP holdings at just over $100. The P/E is at the top of the fair range for me. They are still facing headwinds with currency, carbonated soda sales and activist investors still playing their games. If it weren't that PEP was over 9% of my portfolio and 10x the size of my smallest position, I may have held on. Now it's in the high 6% range and still over 5% of my dividend income. The bump in the dividend, which they said would start in June, will ameliorate some of the loss of income.
At 3% cash, I'm more cash flush than I've been in a while. Now I'm looking for suitable replacement(s). I also have a covered call out on AFL. If it exercises, I'll get to play around with some cash-secured puts and get back in at a lower price. I really needed to trim that also.
I have a limit order in for RY to get a little more exposure to the US and Canadian economies. R2R pointed out so nicely how much more foreign exposure BNS has to other markets.
Right now I'm thinking some JNJ or EMR. I really need to add to REITs and utes but not at these prices.
P.S. Someone please send the Correction Fairy so I'd feel better about putting that cash to work.
Today I sold 20% of my PEP holdings at just over $100. The P/E is at the top of the fair range for me. They are still facing headwinds with currency, carbonated soda sales and activist investors still playing their games. If it weren't that PEP was over 9% of my portfolio and 10x the size of my smallest position, I may have held on. Now it's in the high 6% range and still over 5% of my dividend income. The bump in the dividend, which they said would start in June, will ameliorate some of the loss of income.
At 3% cash, I'm more cash flush than I've been in a while. Now I'm looking for suitable replacement(s). I also have a covered call out on AFL. If it exercises, I'll get to play around with some cash-secured puts and get back in at a lower price. I really needed to trim that also.
I have a limit order in for RY to get a little more exposure to the US and Canadian economies. R2R pointed out so nicely how much more foreign exposure BNS has to other markets.
Right now I'm thinking some JNJ or EMR. I really need to add to REITs and utes but not at these prices.
P.S. Someone please send the Correction Fairy so I'd feel better about putting that cash to work.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan